LONDON, March 3, 2011 /PRNewswire/ -- Global Strategies Group (GLOBAL), the former owner and now largest shareholder in GLOBAL Defense Technology and Systems (GTEC), and the GTEC board have accepted an offer to sell the GTEC business to a US based investment firm, Ares Management LLC (Ares).
GLOBAL acquired GTEC (then SFA) in February 2007. Over the following two and a half years, GLOBAL transformed the business, doubling revenue, trebling earnings and adding strategic focus and direction before completing a highly successful IPO of the company in November 2009.
Ares has made a cash tender offer of USD24.25 per share, representing a premium of approximately 51% over GTEC's closing stock price as of March 2, 2011, and 56% over its 90-day average closing stock price. For GLOBAL, the sale will add significant funds to an already strong balance sheet and dynamic organic growth performance, allowing for the development of investment opportunities that will keep GLOBAL at the forefront of the defence and national security sector.
Commenting on the transaction, Damian Perl, Chairman and Chief Executive of Global Strategies Group said:
"The sale of GTEC is a very positive step forward for GLOBAL, and completes a very successful investment cycle. The sale proceeds will add to our already strong balance sheet and will allow for investment across the Group, strengthening our overall business and enhancing our ability to support clients in tackling an increasingly complex range of threats to national security worldwide. I would like to wish the GTEC team well as they move across to Ares."
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